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EUR/USD Climbs Above 1.1400 as Dollar Eases on Fading Tensions

EUR/USD has recovered modestly above 1.1400 after slipping to 1.1404 last week amid renewed US-Iran clashes that revived dollar safe-haven flows. The pair had earlier rallied to 1.1455 following June US nonfarm payrolls of just 57k, but hawkish June FOMC minutes and softer Eurozone HICP at 2.8% headline/2.4% core capped gains. Markets now price roughly 30 bps of ECB tightening this year while watching Tuesday’s US CPI and ongoing geopolitical developments for the next directional cue.

Category

EUR/USD

Sentiment

Mixed

Event

Market commentary

Reading time

1 min